JM Smucker Company (SJM)
Working capital turnover
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,726,100 | 8,178,700 | 8,529,200 | 7,998,900 | 8,002,700 |
| Total current assets | US$ in thousands | 2,146,600 | 1,966,900 | 2,858,700 | 2,010,100 | 1,941,700 |
| Total current liabilities | US$ in thousands | 2,652,000 | 3,761,100 | 1,986,700 | 1,952,800 | 2,867,500 |
| Working capital turnover | — | — | 9.78 | 139.60 | — |
April 30, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $8,726,100K ÷ ($2,146,600K – $2,652,000K)
= —
The analysis of JM Smucker Company's working capital turnover over the specified periods reveals significant fluctuations. As of April 30, 2021, the working capital turnover ratio is not available, indicating either a lack of sufficient data or that the ratio was not calculated or reported for that fiscal year.
By April 30, 2022, the ratio is reported at 139.60, which signifies a high level of efficiency in utilizing working capital to generate sales. Such a high ratio suggests that the company was able to generate substantial sales volume relative to its working capital during this period, potentially reflecting optimized inventory management, receivables collection, and payables management.
However, by April 30, 2023, the working capital turnover ratio decreases sharply to 9.78. Although this value remains positive, it indicates a notable decline in operational efficiency with respect to working capital utilization. This substantial drop could be attributable to several factors, such as increased working capital levels, reduced sales, or operational adjustments affecting the turnover rate.
For the subsequent two years, April 30, 2024, and April 30, 2025, the ratio data are not available, implying that either the ratios were not computed or reported, or the necessary data points preclude the calculation for those periods.
Overall, the trend shows a peak in working capital turnover at 139.60 in 2022, followed by a significant decrease in 2023. The considerable variability suggests changes in operational efficiency or financial management strategies across these fiscal periods, warranting further analysis of underlying components such as sales, receivables, and inventory levels to fully understand the causes behind these shifts.